The ACCC has published Comparator websites: A guide for comparator website operators and suppliers covering all aspects of comparator services, including advertising and marketing. Background.
The guide was developed in response to concerns by the ACCC about a lack of transparency in terms of both the material on the operators’ websites and the commercial relationships behind-the-scenes.
The Guide discusses three key principles to assist operators and suppliers when making decisions about all aspects relating to the comparison service:
- Facilitate honest, like-for-like comparisons
- Be transparent about commercial relationships
- Clearly disclose who and what is being compared.
Like-for-like comparisons will normally involve the following:
- operators presenting results in descending order with the ‘best match’ to a consumer’s stated needs appearing at the top
- operators disclosing what is meant by a value ranking
- operators making accurate savings representations or claims
- operators having systems in place to ensure the accuracy and quality of product information
- operators disclosing any assumptions used when displaying search results
- suppliers providing timely and accurate information to operators.
Some categories of commercial relationships that could mislead or deceive consumers if they are not prominently disclosed
include:
- operators promoting or giving preference to the products of particular suppliers by displaying results on the basis of commercial relationships rather than the consumer’s stated preferences
- sales quotas affecting the promotion, recommendation and ranking of products, particularly in circumstances where the operator agrees to sell a specified number of a particular supplier’s products in a certain period.
The ACCC recommends that operators clearly and prominently differentiate ‘sponsored’ or ‘advertised’ products from the organic search results – for example, by using different colours and including a statement that the product is being ‘advertised’ or ‘sponsored’ – otherwise consumers are likely to be misled.
The guide also covers:
- Independence of comparator website operators
- Fairness of algorithm results
- Information provided by call centres
- Nature and extent of comparisons
- Value rankings
- Representations about savings
- Timeliness and accuracy of information